Today, the Oregon Court of Appeals ruled that a worker injured in a car accident while on the job may obtain underinsured motorist insurance benefits without having to pay back the workers' compensation insurer.
In Longstreet v. Liberty Northwest Insurance, Dean Longstreet was injured as a passenger in a car while working. Workers' compensation paid medical bills and other benefits. The general rule is that when a worker sues a "third party" (someone other than the employer), then the worker must spend some of the money to pay back the workers' compensation insurer.
Previously, I explained why a worker may and should obtain workers' compensation AND sue third parties, if you want more information.
Here's the new twist with the Longstreet case. First, Mr. Longstreet obtained workers' compensation. Second, he recovered money from the at-fault driver, who had only $50,000 of insurance. Longstreet shared the recovery with the "comp" insurer, as he must. Next, he sought underinsured motorist ("UIM") coverage from the insurer of the car he was in, but he did not want to share that with that settlement with comp insurer.
The court agreed with Mr. Longstreet. A specific statute (ORS 742.504(4)(c)) says the injured worker keeps UIM benefits. This specific statute trumps the general statute that requires paying back the workers' compensation insurer.
Jeff Merrick, Oregon Trial Attorney
Injury & Employment Law
503-665-4234
The above is not legal advice. I cannot give you sound advice without knowing more information. It is intended to raise some issues for you to discuss with your own lawyer.
